{"id":7535,"date":"2021-12-28T17:56:16","date_gmt":"2021-12-28T17:56:16","guid":{"rendered":"https:\/\/www.futuresandoptions.gr\/en\/?p=7535"},"modified":"2021-12-28T17:56:44","modified_gmt":"2021-12-28T17:56:44","slug":"cftc-charges-entities-and-individuals-with-multi-million-dollar-forex-fraud","status":"publish","type":"post","link":"https:\/\/www.futuresandoptions.gr\/en\/cftc-charges-entities-and-individuals-with-multi-million-dollar-forex-fraud\/","title":{"rendered":"CFTC Charges Entities and Individuals With Multi-Million Dollar Forex Fraud"},"content":{"rendered":"<p>The Commodity Futures Trading Commission announced today that it has filed a civil enforcement action in the U.S. District Court for the District of New Jersey against\u00a0<b>WorldWideMarkets, Ltd.<\/b>,\u00a0<b>TAB Networks, Inc.<\/b>,\u00a0<b>Thomas Plaut<\/b>\u00a0of Saddle River, N.J., and\u00a0<b>Arthur Dembro<\/b>\u00a0of New York, N.Y., charging them with fraud and other violations.<\/p>\n<p>The complaint alleges that the two companies, acting as a common enterprise under Plaut\u2019s control from an office in Woodcliff Lake, N.J., operated a long-running scheme from approximately March 2012 through September 2018 that defrauded retail <a href=\"https:\/\/www.futuresandoptions.gr\/en\/category\/forex-2\/\">forex<\/a> customers worldwide. Dembro, who was the Chief Financial Officer of both companies, is alleged to have aided and abetted the fraud.<\/p>\n<p>The complaint also states that WorldWideMarkets ignored CFTC registration requirements and customer-protection rules and ultimately went defunct after systematically misappropriating at least $4.7 million of customer funds.<\/p>\n<p>\u201cThis complaint underscores the critical importance of the CFTC\u2019s registration requirements and that market participants comply with applicable customer protection regulations,\u201d said Acting Director of Enforcement Vincent McGonagle. \u201cIt should come as no surprise that a company that avoided a requirement to maintain sufficient levels of adjusted net capital would become insolvent after operating in a Ponzi-like manner for years.\u201d<\/p>\n<h4><b>Case Background<\/b><\/h4>\n<p>The complaint alleges that WorldWideMarkets, with TAB Networks performing substantially all of its business activities, acted as the counterparty to forex transactions with at least 14,000 retail customers between 2012 and 2018. The complaint states that although the companies operated out of a New Jersey office, Plaut organized WorldWideMarkets in the British Virgin Islands for the purpose of evading U.S. registration and customer protection regulations that apply to retail forex dealers.<\/p>\n<p>According to the complaint, WorldWideMarkets did not maintain sufficient levels of adjusted net capital; it did not maintain assets equal to its retail forex obligation in a financial institution in a money center country; and it also falsely misrepresented to all of its customers that WorldWideMarkets would hold their money \u201csafely\u201d in \u201csegregated accounts.\u201d In addition, the complaint alleges that from approximately March 2012 through 2018, WorldWideMarkets\u2019 misappropriated a minimum of $4.7 million from customers by improperly using customer assets to pay operating expenses, employee salaries and benefits, and to make cash distributions to Plaut.<\/p>\n<p>The Division of Enforcement thanks and acknowledges the assistance of the U.S. Securities and Exchange Commission and the British Virgin Islands Financial Services Commission.<\/p>\n<p>The Division of Enforcement staff members responsible for this case Joseph Platt, Joseph Patrick, Joseph Konizeski, Scott Williamson, and Robert Howell and former staff members Camille Arnold and Lindsey Evans.<\/p>\n<p>&nbsp;<\/p>\n<h2><b>CFTC\u2019s Forex Fraud Advisory<\/b><\/h2>\n<p>The CFTC has issued several customer protection\u00a0<a href=\"https:\/\/www.cftc.gov\/LearnAndProtect\/AdvisoriesAndArticles\/index.htm\">Fraud Advisories and Articles<\/a>\u00a0that provide the warning signs of fraud, including the\u00a0Foreign Currency Trading (Forex) Fraud Advisory, which alerts customers to forex fraud and lists simple ways to spot forex scams.<\/p>\n<p>Customers and other individuals can report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382),\u00a0file a tip or complaint\u00a0online, or contact the\u00a0<a href=\"http:\/\/www.whistleblower.gov\/\">Whistleblower Office<\/a>.\u00a0Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected paid from the Customer Protection Fund financed through monetary sanctions paid to the CFTC by violators of the CEA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Commodity Futures Trading Commission announced today that it has filed a civil enforcement action in the U.S. District Court for the District of New Jersey against\u00a0WorldWideMarkets, Ltd.,\u00a0TAB Networks, Inc.,\u00a0Thomas Plaut\u00a0of Saddle River, N.J., and\u00a0Arthur Dembro\u00a0of New York, N.Y., charging them with fraud and other violations.<\/p>\n","protected":false},"author":2,"featured_media":4112,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1123,29,241,14],"tags":[1716,1086,6,1717,755,37,1715,1714],"class_list":["post-7535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finreg","category-forex-2","category-futures-2","category-financial-news","tag-arthur-dembro","tag-cftc","tag-forex","tag-forex-scams","tag-fraud","tag-futures","tag-tab-networks","tag-worldwidemarkets"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CFTC Charges Entities and Individuals With Multi-Million Dollar Forex Fraud<\/title>\n<meta name=\"description\" content=\"The CFTC announced that it has filed a civil enforcement action in the District Court for the District of New Jersey 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